Taking a Gamble.

[Swisher33]

Hello Everyone,

I am from NYC About 2 years ago I lost my job received my 401k and opened a regular IRA in 2011 I had about $38,000. My husband and I are trying to start a family in Jan.2013 we began seeing a fertility Dr. June of 2013 I used $15,000 down payment for our dream. I was wondering I know I have penalties is there any sort of medical hardship that I can claim? I am blessed I had my 401 to at least have one shot at this. Any advice be Great.

Thanks so much Swish1

[disneysteve]

I'm not aware of any type of medical hardship exemption for cashing out a retirement plan. That $15,000 will get you a 10% penalty of $1,500 as well as owing regular income tax on the amount so in the neighborhood of $3,750 for a total hit of about $5,250. Make sure you are prepared for that when tax time rolls around.

Good luck with the fertility treatment.

[Swisher33]

I'm not aware of any type of medical hardship exemption for cashing out a retirement plan. That $15,000 will get you a 10% penalty of $1,500 as well as owing regular income tax on the amount so in the neighborhood of $3,750 for a total hit of about $5,250. Make sure you are prepared for that when tax time rolls around.

Good luck with the fertility treatment.

Thank you Steve. Yes I know that big old chunk is coming out I was just wondering!

Thanks Swish

[KTP]

Perhaps a bit late for the OP, but do consider that 29 states have what is called Filial Support laws on the books. What this means is your adult child could eventually be responsible for your bills and medical expenses. This sounds medieval but it is true.

So before you rob your 401K retirement to have a child, consider that you might be creating a slave who will have to work possibly much longer to support your inadequate retirement.

Google Filial Support laws for a few cases in PA....children having to pay $300,000 toward their parent's bills.